Farha Aslam Quotations

The poultry environment in the first quarter was very challenging with prices for both boneless skin breast meat and leg quarters near historic lows. Given the record amount of poultry in cold storage, we anticipate prices will remain under pressure for at least the next few weeks, if not months.

We believe these headlines are negative for beef processors, particularly Tyson Foods, the largest U.S. beef processor.

Tyson Foods is currently experiencing extremely difficult industry dynamics in two of its largest businesses, poultry and beef. This has severely pressured sales and profit margins and has caused Tyson Foods' credit ratings to deteriorate.

Avian influenza has definitely impacted the demand for poultry in the international market and caused poultry prices to weaken, particularly leg quarters.

The market had already factored in the pretty weak results in beef, but Pilgrim's Pride earnings highlighted the difficult trends in poultry. We anticipate poultry pricing will be pressured through at least spring, barring any notable AI outbreaks.